China’s Addiction to Debt Now Threatens Its Growth -<br />By KEITH BRADSHERMAY 24, 2017<br />SHANGHAI — China has gone on a spending spree, borrowing money to build cities, create manufacturing giants and nurture financial markets — money<br />that has helped drive the economic powerhouse in recent years.<br />“We should think first to stabilize leverage — that is, to stabilize the overall rate of leverage, or let it grow more slowly.”<br />Zhou Xiaochuan, the governor of the central bank, said the same month: “Every enterprise,<br />especially those with too high a rate of leverage, should be controlled.”<br />Foresea was among the first to be pinched.<br />The China Insurance Regulatory Commission in December banned Foresea from offering new products, contending<br />that the company was essentially selling high-yield debt even though it had permission to issue relatively low-risk life insurance.
